Generally, a Judgment creditor is able to freeze a bank account and collect funds up to the amount of the judgment debt. However, funds derived from certain sources, such as Social Security Disability, Social Security Income and Veterans Benefits are exempt from collection by Judgment Creditors. Now, the onus is on the bank to determine the sourse of the funds and determine whether the funds are exempt from collection. This saves the account holder the hassle and time of objecting to the collection of the subject funds. The protection of the Federal Benefits is contingent upon having the funds electronically deposited and the funds must be deposited within the past two months to be exempt from collection. For more information on protecting your income, please contact Sadek Law Offices, LLC at 215-545-0008.
If there are any general questions or topics you would like to read about relating to bankruptcy law in the Eastern Pennsylvania region, you may contact the Bankruptcy Lawyers at Sadek Law Offices, LLC at 215-545-0008 or 610-432-3111 or email brad@sadek-cooper-site. Thank you.